RFID vs. barcode for asset tracking:
How to make the right choice for your business

From consumer products and food packaging to pipe fittings and hazardous material containers, just about everything has some sort of label affixed to it that contains important information that buyers, sellers or manufacturers need to be aware of. Most of us are familiar with barcodes and QR codes, but the technology that goes into them may come as a surprise.

It’s essential to understand the differences between barcode labels (affixed to a surface) and tags (attached to an asset) and the devices that “read” them because how they will be used—the what, why, when and where—make a big difference. Both barcode and RFID readers are used in integrated intelligent manufacturing solutions. Barcodes often serve to identify the location of production orders, input inventory quantities of raw materials, and help signal the completion of finished goods. RFID can perform similar functions, but eliminates the human element, improving accuracy and automating the scan.

Before we get started, it’s important to note that we are talking about asset tracking, not inventory tracking. They are not the same thing. Asset tracking is the ability to locate an asset (where it is or where it most recently was) and use that information to perform a function or provide a notification. Inventory tracking is the monitoring of the volume of many of the same items, like the number of XL white T-shirts in stock.

In this blog, we’ll go over:

• How asset tracking can be used
• Basic differences between RFID reader and barcode scanner technologies
• What to consider when choosing between the two
• Types of labels and tags used with barcode scanners and RFID readers + use cases
• Types of barcode scanners and RFID readers + use cases
• What barcode scanner and RFID reader software can do for your business

How asset tracking can be used

There are many uses for asset tracking. We won’t go into detail on all of them, but here are a few that can get you started thinking about how you can use barcode readers and/or RFID (short for radio frequency identification) scanners in your business:

• Tracking high value assets that tend to get lost, misplaced or stolen
• Tracking assets that get put together but whose components aren’t stored together
• Keeping assets that should NEVER go together well apart from each other (e.g., hazardous materials)
• Ensuring assets that are sensitive to environmental conditions remain safe
• Shipping notifications when items pass a particular point
• Tracking down assets when a defect is identified, or a recall is issued

RFID reader vs. barcode scanner technology: basic differences

RFID reader and optical barcode scanner technologies can both help a company improve productivity, performance, compliance, safety and security through asset tracking. Here are some of the basic differences between the two technologies.

 

 

Barcode scanner

• Scan labels individually
• Scanner requires direct line of sight to label
• Stores a limited amount of information
• Data is not encrypted
• Read-only functionality
• Generally less expensive than RFID
• Barcodes can be easily copied
• Technology standardized worldwide

 

RFID reader

• Scan multiple tags at once
• Can be read at a distance or through objects
• Can store complex information
• Data can be encrypted for security purposes
• Read and write (encoding) functionality
• Generally more expensive than barcode
• Can be complex to install/integrate

Choosing the right barcode scanner or RFID reader technology for your application

Optical barcode scanner and RFID reader technologies can both help a company improve productivity, performance, compliance, safety and security through asset tracking, but there are distinct differences that require consideration before choosing one or the other. Among the considerations:

• The technology you already have in use
• The material or asset the label/tag will be affixed or attached to
• The physical environment the asset will be exposed to
• How the asset will be handled and how long it will be used
• How much/what type of information needs to be embedded in the tag itself
• Whether there are industry regulations you must comply with

Types of labels and tags used with barcode scanners and RFID readers

There are hundreds of different types of labels and tags that can be used with barcode readers and RFID scanners, each with its own advantages and limitations. Choosing the right one for the application at hand depends on several factors, including:

• Material composition – the type of material the label or tag is being affixed to
• Surface shape – the shape of the asset, e.g., curved, flat, pebbled, smooth, etc.
• Environmental conditions – some must be able to withstand harsh conditions such as chemicals, high temperatures and abrasion
• Handling – how the asset will be handled as it is moved from place to place
• Compliance standards – some regulatory bodies dictate what type of information is required
• Information required – some assets just need an identifier and price, while others require more information
• Printing equipment – the type of label maker being used for printing labels or tags

As an example, here are three very different use cases that would require completely different approaches to each factor identified above:

Types of barcode scanners and RFID readers

There are also many different kinds of optical barcode scanners and RFID readers, most of which fall into the categories of handheld or fixed (like those that you find in retail self-checkout kiosks). Optical barcode scanners use a beam of light to “read” the barcode printed on a label or tag. RFID readers pull data from RFID chips embedded in them via radio waves. Obviously, which type you choose depends on whether you’re using barcode or RFID technology, but there are other considerations as well, including:

• Read range – how far away the asset will be from the reader or scanner
• Read speed – how many assets will be scanned/read and how quick
• Location density – how many assets will be within “reading” distance and how close together they will be
• Label/tag location – affixed or attached inside or outside of an asset, wrapped around something, etc.
• Asset orientation – pertaining to how the asset will be moved and/or stored
• Barcode type – 1 dimension (1D) flat barcode, 2D QR code, 3D barcode

The software

The barcode reader or RFID scanner sends information back to a database, and from there the choice of software dictates what happens. It varies by application. For instance, the software may send a message if an asset is in an area it’s not supposed to be in, automatically update the location within the database, then prompt a user to take an action. At the other end of the spectrum, software can dictate how your data is reported so you can use it to make relevant business decisions.